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  • 1.  Endowment reports to donors who give via a DAF

    Posted 02-04-2019 07:34 PM
    Dear Listers: I am wondering how many of you out there in stewardship land have different financial reports for donors who fund named endowment funds via a DAF? We have a tricky one, where the donor funds an endowed scholarship via a DAF. The donor would like very detailed stewardship reports for the endowment ( exceeding our policy) - such as month over month investment earnings, and detail on expenses hitting the payout etc. . But in truth, the actual "donor" is the DAF NOT the donor who recommended the DAF. The DAF is therefore the donor of record and the only entity entitled to reports. The donor to the DAF should only get a warm thank you and something about the scholarship benefit to the student. I am therefore wondering: do you report differently to donors who contribute to endowment funds via a DAF vs their own funds? Very tricky Deborah Brown Associate Vice President University Advancement The Catholic University of America Sent from my iPhone


  • 2.  Re: Endowment reports to donors who give via a DAF

    Posted 02-04-2019 09:00 PM
    I believe you have introduced two very different topics. 1. Regarding endowment stewardship, I think it critically important to steward those directly responsible for funding the endowment. That absolutely would include the individual who applied to a DAF to distribute funds to you (and who no doubt specified what type of endowment - It is rare for a DAF to be so independently specific). This individual, not the corporate DAF entity, is the one who could likely direct or suggest future gifts to your institution. So to answer your question, no - I have no special rules for endowments funded by DAFs or private foundations. The individual taking action to make the gift happens deserves the report. Of course, the DAF should receive one as well - if, that is, they want one (I know that Fidelity and others have specifically told me to not send them such reports). 2. It seems that there might be a misunderstanding with this particular individual as to what standard reporting you provide to all of your donors. This is usually described at the outset when establishing the endowment (I gather this individual signed the endowment agreement stipulating to your annual report). If those expectations were not clearly set at the beginning then going forward I suggest the creation of an FAQ or donor guide to ensure they know what you will be delivering and when. Clearly what has been requested here is well outside the standards most of us follow. You state that what the donor has requested exceeds your policy. I suggest that the Development Officer for this donor share that policy with them and explain how providing anything more substantial will cause a lower return on investment - or perhaps a higher management fee on the endowment to provide non-standard reporting. On the 2nd point, I agree that sometimes exceptions are made for donors who have made significant contributions. We don't like them, but we do them. But those exceptions should be made by the VP being fully aware of the strain it will create for staff. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, Feb 4, 2019 at 8:34 PM Deborah Brown <browndl@cua.edu> wrote: > Dear Listers: > I am wondering how many of you out there in stewardship land have > different financial reports for donors who fund named endowment funds via a > DAF? > We have a tricky one, where the donor funds an endowed scholarship via a > DAF. The donor would like very detailed stewardship reports for the > endowment ( exceeding our policy) - such as month over month investment > earnings, and detail on expenses hitting the payout etc. . But in truth, > the actual "donor" is the DAF NOT the donor who recommended the DAF. The > DAF is therefore the donor of record and the only entity entitled to > reports. The donor to the DAF should only get a warm thank you and > something about the scholarship benefit to the student. > > I am therefore wondering: do you report differently to donors who > contribute to endowment funds via a DAF vs their own funds? > > Very tricky > > Deborah Brown > Associate Vice President > University Advancement > The Catholic University of America > > > Sent from my iPhone


  • 3.  Re: Endowment reports to donors who give via a DAF

    Posted 02-05-2019 07:23 AM
    I guess all I can add is "ditto" to everything John just said. :-) Of all the impact reports we provide, we do have ONE fund that gets a slightly enhanced report, because he's *that* donor. And it was that way at my previous position as well. Jennifer Boettger | Director of Advancement Services Coe College Office of Advancement 1220 First Ave. NE | Cedar Rapids, IA 52402 jboettger@coe.edu | 319-399-8614 On Mon, Feb 4, 2019 at 9:00 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > I believe you have introduced two very different topics. > > 1. Regarding endowment stewardship, I think it critically important to > steward those directly responsible for funding the endowment. That > absolutely would include the individual who applied to a DAF to distribute > funds to you (and who no doubt specified what type of endowment - It is > rare for a DAF to be so independently specific). This individual, not the > corporate DAF entity, is the one who could likely direct or suggest future > gifts to your institution. So to answer your question, no - I have no > special rules for endowments funded by DAFs or private foundations. The > individual taking action to make the gift happens deserves the report. Of > course, the DAF should receive one as well - if, that is, they want one (I > know that Fidelity and others have specifically told me to not send them > such reports). > 2. It seems that there might be a misunderstanding with this > particular individual as to what standard reporting you provide to all of > your donors. This is usually described at the outset when establishing the > endowment (I gather this individual signed the endowment agreement > stipulating to your annual report). If those expectations were not clearly > set at the beginning then going forward I suggest the creation of an FAQ or > donor guide to ensure they know what you will be delivering and when. > Clearly what has been requested here is well outside the standards most of > us follow. You state that what the donor has requested exceeds your > policy. I suggest that the Development Officer for this donor share that > policy with them and explain how providing anything more substantial will > cause a lower return on investment - or perhaps a higher management fee on > the endowment to provide non-standard reporting. > > On the 2nd point, I agree that sometimes exceptions are made for donors > who have made significant contributions. We don't like them, but we do > them. But those exceptions should be made by the VP being fully aware of > the strain it will create for staff. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Mon, Feb 4, 2019 at 8:34 PM Deborah Brown <browndl@cua.edu> wrote: > >> Dear Listers: >> I am wondering how many of you out there in stewardship land have >> different financial reports for donors who fund named endowment funds via a >> DAF? >> We have a tricky one, where the donor funds an endowed scholarship via >> a DAF. The donor would like very detailed stewardship reports for the >> endowment ( exceeding our policy) - such as month over month investment >> earnings, and detail on expenses hitting the payout etc. . But in truth, >> the actual "donor" is the DAF NOT the donor who recommended the DAF. The >> DAF is therefore the donor of record and the only entity entitled to >> reports. The donor to the DAF should only get a warm thank you and >> something about the scholarship benefit to the student. >> >> I am therefore wondering: do you report differently to donors who >> contribute to endowment funds via a DAF vs their own funds? >> >> Very tricky >> >> Deborah Brown >> Associate Vice President >> University Advancement >> The Catholic University of America >> >> >> Sent from my iPhone > >